26 February, 2008

ITIL V3 Demand Management and...Demand Management

In one of my previous post I was referring to the definition of Demand Management and how this related to Requirements management and Project Portfolio Management.

With ITIL V3, Demand Management is part of Service Strategy and does not mean the same!!! This will for sure create some confusion for some people.

ITIL Demand Management’s objectives are to optimize the use of capacity by moving workload to less utilized times, servers, or places…. (Nothing to do with users having business requirements!).

This new process refers to:

  • Activity-based Demand Management. Analyzing and tracking the activity patterns of the business process makes it possible to predict demand for service assets that support those services.
  • At a strategic level, Demand Management can involve analysis of Pattern of Business Activity (PBA) and user profiles. Each profile can be associated to one or more PBA.
  • At a tactical level it can involve use of differential charging to encourage Customers to use IT Services at less busy times.
  • Service packages. They represent the value that the customer wants and for which they are willing to pay.

The key elements of the ITIL V3 Demand Management refers to:

o Core/supporting services

o Developing differentiated offerings

o Service Level Packages

o Advantage of core service packages

o Segmentation

Even these concepts may appear no to be crystal clear…


Abhijit Mandavkar said...

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Have a good day!

LambdaMOO said...

Hi Serge,

Good to get a different prospective on Service Demand Management.

From my limited understanding on ITIL; Demand Management can also be perceived as a process which can be used to convert IT into Profit Center by way of highlighting Business Value creation.

For this Demand Management as a process can be used to identify business requirements across various business verticals and offering IT as services to business verticals.

This framework if implemented can be used to define charge back mechanism between business verticals and IT thereby acting as Profit Center.

Will be happy to have your thoughts on this.